Major updates and extended deadlines to Florida condo reserve legislation
In June 2025, Florida enacted sweeping condo law reforms (via HB 913) affecting reserve studies and funding. These changes build on the post-Surfside requirements that all large condo associations conduct Structural Integrity Reserve Studies (SIRS) and fund the repair and replacement projects they recommend.
The new law extends deadlines and raises funding thresholds, while giving boards more financial flexibility such as borrowing and temporary contribution pauses.
Below are the key updates to reserve funding requirements and related governance rules that condo board members and property managers in Florida must know if you’re planning on updated your reserve study service in South Florida.
New Florida law changes how condominium associations manage reserves, especially for buildings like this one, three stories or higher.
Key Changes to SIRS and Reserve Funding
1. Extended SIRS Deadlines and Adjusted Requirements
- The deadline to complete a required SIRS has been moved from December 31, 2024 to December 31, 2025.
- SIRS (and milestone inspections) are now only required for buildings with three or more habitable stories.
- If a building has completed a milestone inspection, the association may defer its SIRS for up to two consecutive budget years following that inspection to focus on structural repairs. After the pause, the board must conduct an updated SIRS before resuming reserve funding.
- The new law also requires SIRS reports to include at least baseline funding plan (ensuring the reserve balance never drops below zero) and mandates that SIRS components be clearly separated from other items in the report.
- Board officers must sign an affidavit confirming receipt of the SIRS report.
2. Flexible Funding Options
- Associations may now fund reserves using special assessments, loans, or lines of credit.
- Any such financial strategy must be approved by a majority of total voting interests.
- These funds must fully cover any previously waived or underfunded reserves and be clearly disclosed in financial reports.
- Boards can now invest reserve funds without a vote from owners, with limitations.
3. Increased Reserve Threshold
- The new law increases the threshold for other items from $10,000 to $25,000, adjusted annually for inflation.
- Components with costs under this threshold may not require formal reserves unless deferred maintenance exists.
- This change slightly reduces the number of items boards must reserve for, especially in smaller buildings. (See our full post on Florida SIRS requirements explained.)
- SIRS reserve accounts must be tracked separately from general reserves.
4. Temporary Suspension of Reserve Contributions
Boards may pause or reduce reserve funding under two specific scenarios:
A. Uninhabitable Building
- If a government official declares a building uninhabitable, the board may suspend reserve contributions immediately, without a vote, to redirect funds toward emergency repairs.
B. Post-Inspection Repairs
- After completing a milestone inspection, boards may pause reserve funding for up to two years to complete critical repairs, if approved by a majority of voting interests.
- The board must then commission an updated SIRS before resuming funding.
5. Reserve Pooling and Accounting Reforms
- The law now clarifies that permits pooling of required reserve categories is allowed (e.g., combining envelope components or structural items). These pooled funding strategies follow industry best practices for reserve studies.
- Boards no longer need a unit owner vote to switch between pooled and straight-line reserve funding methods.
- When using pooled funding, the reserve balance must still meet the SIRS-projected costs across all covered items.
Other Related Changes for Condo Associations
While reserve funding was the primary focus, the new law also brings updates to inspections, board governance, and transparency:
Milestone Inspections
- Clarifies that milestone inspections apply to buildings with three or more habitable stories.
- Counties must enact ordinances requiring repairs to begin within one year of a phase-two inspection report.
Conflict of Interest Disclosures
- Engineers or contractors conducting milestone inspections or SIRS must disclose if they intend to bid on any resulting repair work.
- Hidden financial ties between inspection vendors and repair contractors are prohibited.
CAM Oversight & Electronic Governance
- CAMs (Community Association Managers) with revoked licenses cannot work in the industry for ten years.
- Boards must allow for hybrid (in-person + virtual) meetings and retain video recordings as official records.
- Associations are encouraged to adopt electronic voting systems if at least 25% of owners petition for it.
- For reporting and regulatory compliance, visit the Florida DBPR Condo Division.
What Should Boards and Managers Do Now?
To comply with the updated Florida condo reserve study law and ensure your community remains financially stable and legally protected:
- Review your reserve study schedule and budget for completing a SIRS by the new 2025 deadline.
- Evaluate whether your association qualifies for a reserve contribution pause or needs to explore funding through loans or special assessments.
- Ensure your accounting team separates SIRS reserves from general reserves and updates investment strategies as needed.
- Stay ahead of inspection deadlines and repair mandates under local building codes.
These reforms aim to provide realistic paths to compliance without compromising building safety. For associations in South Florida, understanding and adapting to these reserve funding requirements is now more important than ever. For help navigating the new requirements or updating your funding plan, contact Criterium-Cromer Engineers.